Applebee’s franchise executive from Springfield fired after leaked email about workforce
Applebee's confirmed this week that a mid-level executive with ties to Springfield has been fired after it was revealed that he sent an email detailing how higher gas prices would be good news for the restaurant chain because workers may become desperate and willing to work longer hours for lower wages.
The leaked email, purportedly sent by Wayne Pankratz, has been circulating online for days after it was posted to Reddit on March 21, causing many people to vow they will boycott Applebee's.
"As inflation continues to climb and gas prices continue to go up, that means more hours employees will need to work to maintain their current level of living," Pankratz wrote in the email.
An Applebee's spokesperson said Pankratz was a mid-level executive of Apple Central Group, an Applebee's franchisee. The News-Leader confirmed through court records that Pankratz was a Springfield-based Applebee's employee at least as recently as 2012. He was fired in the wake of the email outrage.
"This is the opinion of an individual, not Applebee’s," Kevin Carrol, Applebee's chief operations officer, said in the statement. "Our team members are the lifeblood of our restaurants, and our franchisees are always looking to reward and incentivize team members, new and current, to remain within the Applebee’s family.”
In the leaked email, Pankratz indicated the company's employee base can no longer rely on stimulus checks or supplemental unemployment, which in turn benefits the company.
"This benefits us as prices rise, people who (are) relying on unemployment money simply will have less money to spend," Pankratz wrote in the email. "It will force people back into the work force."
LEAKED EMAIL: Applebee’s franchise exec says that rising gas prices are great for business because the chain can offer workers lower wages.
“Most of our employee base and potential employee base live paycheck to paycheck… the labor market is about to turn in our favor.” pic.twitter.com/MV2q5DVSpG— More Perfect Union (@MorePerfectUS) March 25, 2022
Since the start of the COVID-19 pandemic in 2020, three rounds of stimulus checks have been issued by the IRS. And as businesses closed temporarily or permanently due to the pandemic, many workers across the country relied on unemployment benefits. As pandemic life recedes, many businesses are now experiencing a labor shortage which led to some companies increasing wages for workers.
More: Springfield businesses try to lure workers with higher wages, bonuses, second chances
"The labor market is about to turn in our favor," Pankratz wrote in the email. "Besides hiring employees in at a lower wage to decrease our labor (when able), make sure you have a pulse on the morale of your employees. Your employees that live check to check are impacted more than the people reading this email."
Jake Holcomb — the now-former manager of an Applebee's location in Lawrence, Kansas — said he shared out the leaked email with others last week after someone brought it to his attention.
"I printed a couple dozen copies of the emails, distributed throughout the restaurant, putting them around places so servers could find them," Holcomb said. "Then, I gave everyone in the restaurant their food for free and we just left; we didn't even close the store."
Holcomb quit that night. He said he shared the email with a friend, who posted a screenshot to Reddit. Since then, partially redacted photos of the printed out emails have circulated on social media.
Multiple employees aside from Holcomb have quit too, including server Lily LaRue.
LaRue, who also began working at the Lawrence restaurant in August 2020, said she quit last Tuesday and knows of about 10 others who have over the last week.
The Lawrence restaurant closed temporarily Tuesday, March 22. When closed, two Applebee's area directors visited the restaurant with bowls of candy and $25 gift cards, LaRue said.
"We brought them our concerns, but rather than addressing those, they bought us candy, locked us out of the liquor closet and made the remaining staff pick up shifts that were outside of their availability," LaRue said. "We posted the emails for customers to see (near the front door), but management took them down and put a sign about equipment issues."
The Lawrence restaurant opened again Wednesday, March 23.
Attempts to reach Pankratz for comment this week were not successful.
Greta Cross is the trending topics reporter for the Springfield News-Leader. Follow her on Twitter and Instagram @gretacrossphoto. Story idea? Email her at gcross@gannett.com
This article originally appeared on Springfield News-Leader: Leaked email from Applebee's franchise executive circles social media
